When using a network structure, many corporate activities are outsourced.
Answer:
Transformational leaders transform their organizations from market leaders in one
industry to market leadership in another.
Answer:
Mintzberg’s entrepreneurial mode is sometimes referred to as “muddling through” since
this decision- making mode tends to be more reactive than proactive in the search for
new opportunities.
Answer:
If a firm’s trends in common-size statements are generally in line with those of the rest
of the industry, problems are less likely than if the firm’s trends are worse than the
industry average.
Answer:
The broader concept of sustainability is closely aligned with Carroll’s view of social
responsibility.
Answer:
An example of a cluster in the United States is computer technology found in the
Silicon Valley.
Answer:
The difference between ethical and discretionary responsibilities is that few people
expect an organization to fulfill ethical responsibilities.
Answer:
The strategic rollup was developed in the mid-1990s as an efficient way to quickly
consolidate a fragmented industry with the resulting large firm creating economies of
scale.
Answer:
Among the most important barriers to international trade are the different standards for
products and services.
Answer:
Business intelligence is one of the fastest growing fields within strategic management.
Answer:
The use of the Internet to market goods directly to the customer allows a company to
use dynamic pricing.
Answer:
Poor implementation is often blamed for strategic failure.
Answer:
Microbreweries that make beer for sale for local customers, use guerilla warfare against
national brewers like Anheuser-Busch.
Answer:
The over-billing of customers in Sears’s auto repair shops was an example of
suboptimization.
Answer:
One member of the European Union (EU) is Chile.
Answer:
A profit center is typically established whenever an organizational unit has control over
both its resources and its products or services.
Answer:
Those who implement strategy will probably be a much more diverse set of people than
those who formulate it.
Answer:
An industry scenario is a forecasted description of a particular industry’s likely future. It
is developed by analyzing the probable impact of future societal forces on key groups in
a particular industry.
Answer:
The more active professional boards are being replaced by the board as a rubber stamp
of the CEO.
Answer:
If the corporation being studied appears to be in poor financial condition, use Altman’s
Bankruptcy Formula to calculate its Z-value.
Answer:
Moral relativism could enable a person to justify almost any sort of decision or action,
so long as it is not declared illegal.
Answer:
The balanced scorecard combines financial measures that tell the results of actions
already taken with operational measures on customer satisfaction, internal processes,
and the corporation’s innovation and improvement activities.
Answer:
If a new business is very similar to that of the acquiring firm, it adds little new to the
corporation and only marginally improves performance.
Answer:
The board of directors has an obligation to approve all decisions that might affect the
long-run performance of the corporation.
Answer:
Multidomestic industries are specific to each country or group of countries.
Answer:
International transfer pricing is primarily used not to evaluate performance, but to
minimize taxes.
Answer:
The public interest rate is the rate of interest banks charge on their lowest risk loans.
Answer:
Corporate scenarios are pro forma balance sheets and income statements that forecast
the effect each alternative strategy and its various programs will likely have on division
and corporate return on investment.
Answer:
An example of forward quasi-integration would be a large pharmaceutical firm that
acquires part interest in a drugstore chain in order to guarantee that its drugs have
access to the distribution channel.
Answer:
People tend to substitute behaviors that are recognized and rewarded for those
behaviors that are ignored, without regard to their contribution to goal accomplishment.
Answer:
Backward integration is often more profitable than forward integration.
Answer:
One component of an effective action plan is the determination of the expected
financial and physical consequences of each action.
Answer:
A buyer may be powerful when changing suppliers costs a great deal.
Answer:
Being known as a socially responsible firm may provide a company with social capital
that can be used for competitive advantage.
Answer:
SWOT analysis by itself is not a panacea for strategy.
Answer:
One example of a steering control used by retail stores is the inventory turnover ratio,
which shows how hard an investment in inventory is working.
Answer:
Generally, the smaller the corporation, the less active is its board of directors.
Answer:
An essential ingredient of MBO is that an employee must be just as concerned with
pleasing the internal customer as the external customer.
Answer:
Which of the following is true of defensive tactics?
A) Defensive tactics aim to lower the probability of attack.
B) Defensive tactics divert attacks to less threatening avenues.
C) Defensive tactics lessen the intensity of an attack.
D) Defensive tactics reduce short-term profitability to ensure long-term profitability.
E) all of the above
Answer:
When a company takes apart a competitor’s product in order to find out how it works,
this process is known as
A) durability.
B) replicability.
C) reverse engineering.
D) transparency.
E) transferability.
Answer:
Which of the following is NOT one of the areas in which goals or objectives should be
developed for use in the balanced scorecard approach?
A) customer
B) innovation and learning
C) financial
D) stakeholder
E) internal business perspective
Answer:
When Smith & Wesson puts its name on others’ products like men’s cologne, it is using
which marketing strategy?
A) demand pricing
B) brand pricing
C) brand extension
D) penetration extension
E) demand extension
Answer:
The type of strategy which describes a company’s overall direction in terms of its
general attitude toward growth and the management of its various businesses and
product lines is
A) functional.
B) operational.
C) business.
D) product.
E) corporate.
Answer:
The U.S. major home appliance industry is an example of an industry
A) that has evolved from an oligopoly to a monopoly.
B) in which each company maintained a distinct product line.
C) that was once fragmented, but now is consolidated.
D) that has experienced consistent, increasing sales.
E) experiencing a successful strategy of product specialization because of product
differentiation.
Answer:
According to Kohlberg, the first level of moral development, characterized by concern
for self, is called
A) principled.
B) conventional.
C) essential.
D) preconventional.
E) fundamental.
Answer:
Which of the following is a red flag according to Schilit?
A) cash flow from operations drops below net income
B) accounts receivable growing faster than sales
C) fluctuating gross margins over time
D) nepotism on the board of directors
E) all of the above
Answer:
According to ________ theory, ________ directors tend to identify with the
corporation.
A) agency; inside
B) corporate governance; inside
C) stewardship; inside
D) corporate governance; affiliated
E) stewardship; outside
Answer:
As opposed to rule-based countries, relationship-based countries tend to
A) be more transparent and have a higher degree of corruption.
B) be more transparent and have a lower degree of corruption.
C) be less transparent and have a lower degree of corruption.
D) be less transparent and have a higher degree of corruption.
E) have the same transparency and same degree of corruption.
Answer:
According to the job characteristics model, how might a manager redesign work to
make workers more responsible and accountable for the performance of the job?
A) combine tasks
B) form natural work units
C) establish client relationships
D) vertically load
E) open feedback channels
Answer:
How does job rotation combat the adverse consequences of task specialization?
A) by altering the work to provide the worker with more control over activities
B) by moving workers through several jobs, thereby exposing them to increased task
variety
C) by combining different tasks, thereby giving them more responsibilities
D) by giving the worker more autonomy through alterations in the job
E) by forming natural work units to provide the worker with more responsibility
Answer:
A formal program of gathering information on a company’s competitors is referred to as
A) statistical modeling.
B) competitive intelligence.
C) competitive strategy.
D) quantitative forecasting.
E) qualitative matrix.
Answer:
A flexible manufacturing system is
A) one-of-a-kind production using skilled labor.
B) highly automated assembly lines making one mass-produced product using little
human labor.
C) a grouping of parts into manufacturing families to produce a wide variety of
mass-produced items.
D) a process utilizing the just-in-time (JIT) method of manufacturing.
E) standardization of components with each machine functioning like a job shop, but is
positioned in the same order as the parts are processed.
Answer:
A corporation’s specific competitive role which is so well-suited to the firm’s internal
and external environment that other corporations are NOT likely to challenge or
dislodge it.
A) strategic fit
B) propitious niche
C) common thread
D) business screen
E) implicit strategy
Answer:
Role relativism is based on the belief that
A) morality is relative to a particular culture.
B) all moral decisions are deeply personal and each person should be allowed to
interpret situations and act on his own moral values.
C) social roles carry with them certain obligations.
D) morality is simply a matter of following the norms of an individual’s peer group.
E) a decision is legitimate if it is common practice.
Answer:
If marketing attains its goal at the expense of rising production costs for the
manufacturing department, the end result of marketing’s achievements and
manufacturing’s cost increases reflects
A) behavior substitution.
B) suboptimization.
C) resource allocation.
D) resource optimization.
E) strategy optimization.
Answer:
The type of marketing strategy in which a company captures a larger share of an
existing market for current products through market saturation or market penetration or
develops new markets for current products is called
A) market development.
B) push strategy.
C) product development.
D) pull strategy.
E) skimming the cream.
Answer:
Which societal force includes demographic trends?
A) political-legal forces
B) labor forces
C) economic forces
D) technological forces
E) sociocultural forces
Answer:
According to the job characteristics model, how might a manager redesign work to
provide workers information on how they are performing?
A) combine tasks
B) form natural work units
C) establish client relationships
D) vertically load the job
E) open feedback channels
Answer:
Transferring profits from a foreign subsidiary to the parent corporation through
dividends, royalties, or management fees is called
A) technology transfer.
B) activity-based costing.
C) transfer pricing.
D) repatriation of profits.
E) transnational funding.
Answer:
Friedman’s position on social responsibility
A) proposes that a lack of social responsibility results in increased government
regulations.
B) appears to be losing traction with business executives.
C) suggests that a lack of social responsibility reduces a firm’s efficiency.
D) explains why firms are using their socially responsible actions for competitive
advantage.
E) mirrors Carroll’s position.
Answer:
When managing corporate culture, the first question management must ask is
A) what the change in strategy means to the corporate culture.
B) whether a change in culture is needed.
C) whether an attempt to change the culture is worth the likely costs.
D) whether it is possible to manage around the culture.
E) whether stakeholders will be impacted.
Answer:
What financial ratio serves as a short-term indicator of the company’s ability to pay its
short-term liabilities from its short-term assets?
A) quick ratio
B) current ratio
C) cash ratio
D) strategic ratio
E) inventory ratio
Answer:
Which one of the following is NOT one of the activities and techniques typically used
in an assessment center to evaluate a person’s suitability for advancement?
A) leaderless group discussions
B) management games
C) in-basket exercises
D) IQ tests
E) case analyses
Answer:
Leveraged buyouts are also sometimes referred to as
A) leveraged bargains.
B) management buyouts.
C) management bargains.
D) coordinated buyouts.
E) debt buyouts.
Answer:
The particular combination of product, place, promotion, and price is called
A) marketing position.
B) product life cycle.
C) market segmentation.
D) marketing mix.
E) marketing leverage.
Answer:
Which barrier to entry is demonstrated by Microsoft’s MS-DOS operating system?
A) government policy
B) access to distribution channels
C) cost disadvantages independent of size
D) capital requirements
E) economies of scale
Answer:
According to the text, what is the “key” to effective management of change in culture?
A) planning
B) operationalization
C) evaluation
D) staffing
E) communication
Answer:
An attempt to explain that vertical integration is more efficient than contracting for
goods and services in the marketplace when the transaction costs of buying goods on
the open market becomes too great has been proposed by
A) population theory.
B) institution theory.
C) freakonomics.
D) transaction cost economics.
E) transaction growth theory.
Answer:
Which financial ratio measures the extent to which the company’s capital is in cash or
cash equivalents?
A) quick ratio
B) current ratio
C) cash ratio
D) strategic ratio
E) inventory ratio
Answer:
According to the utilitarian approach, stakeholders who have a legal or moral claim on
company resources have
A) power.
B) legitimacy.
C) urgency.
D) utility.
E) stability.
Answer:
Which strategy has been used successfully by Yum! Brands to establish KFC and Pizza
Hut restaurants across the globe?
A) joint venture
B) licensing arrangement
C) strategic alliance
D) marketing strategy
E) value-chain partnership
Answer:
Which of the following statements is true concerning clusters?
A) The desire to build or upgrade a core competency is one reason why entrepreneurial
and other fast-growing firms often tend to locate close to their competitors.
B) Clusters are geographic concentrations of interconnected companies and industries.
C) An example of a cluster in the United States is California’s Silicon Valley.
D) According to Porter, clusters provide access to employees, suppliers, specialized
information, and complementary products.
E) all of the above
Answer:
The program which incorporates the statistical approach of Six Sigma with the lean
manufacturing program originally developed by Toyota is known as
A) reengineering.
B) Lean Six Sigma.
C) job enlargement.
D) just-in-time.
E) flexible manufacturing.
Answer: